Intel Corp $INTC said its manufacturing division will operate as a separate unit and start generating margin!
But the company did not announce a new external customer for this business as part of its foundry services (foundry = a manufacturing facility that makes chips for other companies), a key part of Intel's turnaround plans in which it will offer its manufacturing services to other companies, including its competitors.
Based on this model, Intel will be the second largest foundry next year with manufacturing revenues exceeding $20 billion!
Do you believe in Intel's turnaround? I certainly do.
Could it be that Intel doesn't belong in the old world after all? I would also rather bet on a comeback. The $20 billion sounds good.
Sounds nice for Intel, I admit I rather wrote them off when they were down and didn't really believe they could find anything on the competition. Still though, I guess I'll just keep watching and not rush into a purchase.
More good news for Intel. Fingers crossed they can fill their production capacity and get big customers. It could help Intel stock and improve their position in the industry.
This announcement may be more PR than anything else. So far, we don't see any concrete evidence of Intel being successful in the external customer foundry market, although they have apparently been trying to do so for some time. Without more details, it's hard to judge whether their technology and experience will be enough to make them successful.
I think Intel can and will pick it up again, it just may take a while. The current moves are only gradually starting to take effect.